Friday's Early Winners and Losers

Shares of Horizon Health ( HORC) tumbled in late trading Thursday after the health care services company missed Wall Street's third-quarter earnings estimates and lowered its guidance for fiscal 2006 and 2007.

For the quarter ended May 31, Horizon's income rose to $3.7 million, or 24 cents a share, from $3.5 million, or 24 cents a share, a year earlier. Analysts were looking for earnings of 30 cents a share. Revenue increased 42% to $76.2 million from $53.8 million. "The company has now become concerned about the effect of pricing pressures on its behavioral health-management contract business because of hospital reimbursement issues," Horizon said.

The company now sees fiscal 2006 earnings guidance of 78 cents to 80 cents a share, below an April forecast of 92 cents to 97 cents. Wall Street's estimate calls for a profit of 94 cents a share. Horizon also cut its fiscal 2007 earnings forecast to $1.02 to $1.06 a share from a prior view of $1.26 to $1.30. Analysts project earnings of $1.32 a share. Horizon shares sank $5.88, or 29%, to $14.41 in after-hours trading.

Tibco Software ( TIBX) shares moved higher after the company posted fiscal second-quarter results that beat Wall Street's estimates. For the quarter ended June 4, Tibco earned $24.5 million, or 11 cents a share, up from $21.7 million, or 10 cents a share, a year ago. Excluding expenses related to stock options, a $15 million tax credit and other items, the company earned 8 cents a share, compared with 4 cents a share last year. Analysts were looking for earnings of 6 cents a share. Revenue rose to $121.2 million from $101.4 million a year ago, exceeding Wall Street's forecast of $118 million. Shares rose 21 cents, or 3%, to $7.25 in late trading.

Shares of Starbucks ( SBUX) fell after the Seattle-based coffee retailer missed Wall Street's same-store sales estimates for June. The company reported a 6% increase in June same-store sales, while analysts expected a 7% increase. Starbucks' own forecast calls for monthly same-store sales growth of 3% to 7%. Starbucks reported revenue of $751 million for the five-week period ended July 2, up 22% from a year ago. The company said sales were driven by its seasonal handcrafted blended beverages and strong food sales. Shares slipped $1.32, or 3.5%, to $36.56 after hours.

Business Objects ( BOBJ) sank after the France-based business-software maker said it will miss its second-quarter targets. Business Objects now sees earnings of 25 cents to 28 cents a share, compared with earlier guidance of 30 cents to 33 cents a share. The company estimates revenue of $287 million to $291 million. In April, it forecast sales of $295 million to $300 million. Analysts polled by Thomson First Call were expecting a profit of 33 cents a share on sales of $298.5 million.

"We are disappointed with our performance this quarter," said John Schwarz, chief executive, in a statement. "Despite total revenue growing year-over-year, our license revenue was below expectations, due in part to a lower closing rate on large transactions. In addition, the European and Asia-Pacific regions will show declining revenue compared to last year, detracting from growth in the Americas region." Shares tumbled $3.79, or 14%, to $23 after hours.

Shares of Laidlaw International ( LI) advanced after the bus company reported mixed third-quarter results. For the quarter ended May 31, the company earned $34.1 million, or 35 cents share, up from $29.4 million, or 29 cents a share, a year ago. Earnings from continuing operations totaled 44 cents a share, below analysts' forecast of 51 cents. Revenue rose to $860.7 million from $836.1 million and topped Wall Street's projection of $849 million. For fiscal 2006, the company said it anticipates revenue growth at the upper end of the 1% to 3% range it previously projected. Laidlaw sees earnings from continuing operations to range between $1.30 and $1.50, bracketing analysts' estimate of $1.43.

Laidlaw also said it plans to repurchase $500 million of common stock using proceeds from a new $550 million debt facility. The new debt combined with existing-term debt will put gross debt at nearly $800 million. Shares gained 80 cents, or 3.1%, to $27 in after-hours trading.